Archive for March, 2009

Earlier this week, the Vanguard Newspapers held a forum with some distinguished guests to discuss the issue of the falling value of the Naira. Experts in attendance included: former Minister of Finance, Dr. Kalu Idika Kalu; Director, Lagos Business School, Professor Pat Utomi who moderated the event; former Economic Planning Minister, Senator Sanusi Daggash; Mr. Jimoh Ibrahim, Chairman, NICON Group; NACCIMA President, Mr. Simeon Okolo; Mr. Opeyemi Agbaje of the Lagos Business School and Vanguard columnists, Les Leba and Dr. Dele Sobowale, among others.

In my opinion, Dr Idika Kalu hit the nail on the head – the main problem is the fact that NIgeria is too dependent on the banking industry which makes up over 50% of the stock exchange and is currently the major employer of labor outside of the government. What we need is a strong manufacturing economy.

And I very very much disagree with Jimoh Ibrahim who is suggesting that the CBN prints more Naira. That is a bunch of bull. It is nonsense. Printing more Naira will increase the risk of inflation and will sink the country into a recession. It can also result in the downgrading of our credit ratings which will affect the flow of foreign investments.

Naija FM and Clinton

In: News

26 Mar 2009

I know that there is little informational value to these pictures. Here is Ojo Maduekwe meeting with Hillary Clinton:

Here is Afrinvest’s response to the recently announce CBN policy changes. I think a substantial part of their analysis is spot on.  Some of the main points are:

  1. Limited scope for a manjor price appreciation of the commercial bank sotcks
  2. Banks have already indicated their intentions to slow down lending volumes to close to zero. So the benefits of these changes and reductions in lending rates are relatively ineffective
  3. A near zero real exchange rate in an economy with an uncertain inflation outlook does not lend itself to medium term currency stability
  4. The Naira is expected to come under substantial pressure
  5. Commercial banks are rated as Underweight
  6. Recommends diversification into non-Naira assets, preferably US$ denominated assets in the short to medium term. Non-financials (particularly Breweries, Beverages and Consumer-related products) continue to offer some scope for value appreciation, despite worsening business/market conditions.

The Central Bank of Nigeria’s Bankers Committee held an emergency meeting over the weekend to discuss the challenges facing the banking sector. The following decisions were reached:

  1. Bankers wont source deposits at rates above 15%.
  2. Lending rate will not be more than 7% above deposit rate (22%).
  3. CBN will lend to bank at rates no more than 5%.
  4. CBN will sell $100m worth of foreign exchange to the Bureau De Changes on a weekly basis to control forex rates.

Here are the market reports for the week ended March 20th 2009 from FSDH, Forte Assets and Zenith Capital:

Here is the stock market report for the week ended March 20th 2009:

The Guardian Newspapers is reporting that the following 6 companies are to list their shares on the NSE:

Here are the weekly market reports from Zenith Securities, FSDH and Forte Assets:

Here are the best and worst stock performers for the week ended March 13th 2009:

Stock Market Report For The Week Ended march 13th 2009

Below are the recently released company results

Here is Zenith Securities’ analysis of Total Nigeria.
Zenith gives the stock a HOLD rating.

About this blog

This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!


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